Vroom Vroom: Yamaha in Pak for bike production

• Dar inaugurates Yamaha plant, says all sectors of economy open for foreign investment with 100pc equity
• Says plant will provide job opportunities to 45,000 people, current account deficit to be brought under 1pc of GDP

Welcoming the Japanese company’s return to Pakistan with a new venture, Finance Minister Senator Ishaq Dar Monday inaugurated the state of the art Yamaha motorcycle plant which brings in investment of $ 150 million.

“We welcome the initiative of establishment of Yamaha Motor Cycle plant which has the honour of being first enterprise in Bin Qasim Special Economic Zone,” Dar said addressing the inaugural ceremony attended by senior Yamaha company officials, Minister for Privatisation Muhammad Zubair, Board of Investment (BOI) Chairman Miftah Ismail and Japanese Ambassador to Pakistan Hiroshi Inomata.

The minister visited the assembly line of the plant after cutting the ribbon and unveiling the plaque, marking the inauguration.

The new plant would provide job opportunities to 45,000 people, directly and indirectly. The company plans to produce motorcycles of 125cc and above in this production facility and export them to distant markets such as Latin America, increasing the export earnings of Pakistan.

In his address, the minister said that the establishment of special economic zones was the main pillar of PML-N government’s investment policy. The government had equal and non–discriminatory treatment to local and foreign investors. Almost all sectors of economy were open for foreign investment with 100 per cent equity basis and repatriation of investment, profits/dividends and capital gains was allowed, he said.

The minister also dilated on the state of economy saying that with commendable efforts and various policy initiatives, the economy had been put on the right track. The growth rate was projected to rise to 5.1 per cent during 2014-15. The tax revenues showed an upward trend and revenue growth of 13 per cent in the period July-March 2014-15 was witnessed compared to last year, despite a massive decline in oil prices. He said the reduction in inflation had enabled the State Bank of Pakistan to reduce the Discount Rate to 8 per cent which was lowest in the last 10 years.

He said that SBP reserves were now over $ 12.5 billion while commercial banks’ reserves exceed $ 5 billion. The balance of payments position would improve further and the current account deficit would be brought to less than 1 per cent of GDP. The Karachi Stock Exchange Index which stood at 19,916 on May 11, 2013, the day the elections were held, had continuously scaled new heights and stood at 33, 490 on April 22, 2015, showing an increase of nearly 68 per cent, the minister said.